List of New and Increased Tax Proposals

Posted on May 2, 2019 by jpheasant


Yesterday, the Finance Committee approved several new forms of taxes. Although I am not a member of this committee, I wanted to share with you a list of those items.

If this budget (as written) were to come to the House floor for a vote, I would strongly oppose it.

The budget put forth by Democrats spends $118 million more over two years than Gov. Lamont’s proposal.

  • Overall plan increases taxes by over a BILLION DOLLARS each year
  • This does not include the implementation of tolls (another $800 million) or FMLA (approx. $400 million)
  • This plan also rejects the recent bipartisan agreement to put 100% of all sales tax revenue (from the sale of new cars) into the Special Transportation Fund. It instead caps the amount at 18%.
  • Removal of the STEM (Science, Technology, Engineering, Math) credit for college graduates
  • New taxes on:
    • safety apparel (remove previous exemption)
    • dry cleaning
    • parking
    • ride-sharing
    • interior design
    • 10¢ charge on plastic and paper bags
  • Increase taxes on:
    • movies (6% to 6.35%)
    • digital downloads – music, electronic books, etc.  (1% to 6.35%)
    • wine and liquor
    • cigarettes

While it wasn’t included in yesterday’s proposal, members of the committee have said that they are also open to shifting 25% of teachers pensions back onto the municipalities.

A few of the items that were included within the governor’s budget plan:

  • A new tax on payroll to fund state-run Family Medical Leave
  • Eliminate the sales tax free week
  • Tax legal services
  • Tax on accounting services
  • Tax on architectural services
  • Tax on engineering services
  • Tax on real estate activities and agents/brokers
  • Tax on veterinary services
  • Tax on barber shops and beauty salons
  • Tax on massage therapists and electrology services
  • Tax on sports/recreation instruction and industries
  • Tax on horse boarding and training
  • Tax on travel arrangement and scenic transportation
  • Tax on services to buildings and dwellings
  • Tax on waste collection
  • Tax Increase hotel occupancy tax from 15% to 17%
  • Tax on Trade-ins for vehicles
  • Tax on Non-prescription drugs
  • Tax on Text books, college & professional schools
  • Tax on Newspapers and magazines
  • Tax on Connecticut credit unions
  • Tax on Campground rentals
  • Tax on Bicycle helmets
  • Tax on child car seats
  • Tax on vegetable seeds
  • A new 25¢ deposit on wine and liquor bottles
  • A new Add 5¢ bottle deposit to nips

Despite the budget plan brought forth yesterday not including all of the governor’s previous proposals, nothing is officially “off of the table” until a final budget is drafted for a vote.